www.mad-mongolia.com September 1, 2013
At its regular meeting on Friday, the cabinet discussed a draft law on making a gold trade transparent and decided to submit it to the State Great Khural.
Together with the bill, the cabinet will submit a draft amendment to the law on mineral resources, reflecting proposals from MPs.
Recently, the gold reserves are decreasing kept in the Bank of Mongolia (BoM) and commercial banks, affecting the exchange reserves of the country, so the draft law reflects regulations regarding imposing of responsibilities on the BoM for purchasing, exporting and registering the gold, creating of a system of purchasing the gold, extracted by companies and small mines with special licenses, and abolishing an illegal trade of gold. It is also said that a person or enterprise, which saves its gold at the BoM or domestic commercial banks, will enjoy a tax discount for exploiting mineral resources.
If the draft is adopted, an annual exploitation of gold will go up by 20 tons, meaning that 150 tons of gold will be exploited within five years.